TEVA Position

I sold out of my position in Teva Pharmaceuticals (TEVA) today within the first 5 minutes of the market open @ $58.24 for a very small gain of just over 3%. I still have my Jan $55.00 call option.

Sold SDS

I closed out my SDS position at $111.93 for a 31.4% gain. My goal was to sell in the $120 range, however there was a 13.8% trading range with a $99.94 low/$113.73 high and I wanted to take advantage of that huge upward move. I wasn't jumping for joy to lock in those profits, but I would have kicked myself for missing that big move.

Going into the Weekend

I was able to get into FXI on Wednesday, but missed out on ADRE. However, with the large drop-off I will be able to get in a a significantly lower price. I feel comfortable with my positions right now and will be looking to take advantage of more downtrend within the market. The big question going forward seems to be: Are we going to test previous lows? My thoughts are that we will.

Going forward I will be more selective and focus on specific stocks within certain industries. Rather than spread cash around 3 - 6 stocks, I will focus and buy 1 - 2, which allows me to be more nimble. My overall market sentiment remains bearish.

The Day After

I tried to get back into some foreign market exposure yesterday, however I set my entry points too low and the market just had too much upward momentum. Today is another day and I will keep with my current strategy moving forward. This includes the following:

*Long on the FXI and ADRE at respective entry points

*Shorting the Dow via the DXD

*Selling covered calls on my position within RIO which will lower my cost basis on this stock

SOLD Rio

I've been in Seattle since Sunday and I have been selectively tracking the market today, but I decided to sell my stake in RIO at $34.43, which was purchased at $31.30.

Christmas Sell-Off?

I think the market will be down at the end of this week. The factors that play into my thought process are year end taxable events, market still recovering from only a 0.25 rate cut, and people closing out positions to lock in year-end gains for themselves and/or stakeholders. There are a few sectors, which I think will be weaker in the near future, so I will keep an eye out for some weakness on Diana Shipping (DSX) and Dryships INC (DRYS). I will also look to short or pick up some puts on Transdigm Group (TDG).

Waiting For a Fed Move

It looks as if a bit of uncertainty is slowly creeping its way into the market place prior to the fed's anticipated rate cut on December 11th. Here is where it gets interesting, initially the market was falling all over itself trying to coerce the fed for a rate cut. It looks as if the market will get its wish, which is why I believe the market was up so huge last week. Anyhow, I feel the market is getting too greedy and talk is abound about how the market may be hoping for a 0.5 basis cut. So what happens if the market gets the lesser of the two? In my opinion the market will take on a downward trend.

To be honest, I have a few put plays in the options market, which expire in December and are not looking to hot right now. However, I still hold out some hope that the fed cuts rates by only 0.25. If for whatever reason they don't cut rates at all then the market better brace for a large drop in market share and increased volatility. I will continue to monitor the market until the fed makes its move, but I am not looking to make any additional large moves in either a bearish/bullish direction.

Higher Highs?

Just wanted to get a sense of what others thought about the continuing rise in the market. It seems that one could argue about certain data and how horrible the market should be acting now, however the market remains resilient. The housing market is still in the doldrums, oil remains at high levels and more economic data is projected to come in the near future which should demonstrate a continued slowdown. So my question to all is: Is everyone hanging their hat on a fed rate cut? What is that magic number that people are looking for? Finally, if that magic number is not achieved or a rate cut does not occur have we become our own worst enemy, by expecting too much too soon and not letting the markets run their true course?